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Calculation of beta

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Pick at least one of the following companies and do the calculations that lead you to a result for beta, in a fashion similar to that which I used to compute 3M's beta in the Excel file included in this posting.

Here is the list of the thirty companies that make up the Dow Jones Industrial 30 (with their ticker code): 3M (MMM), Alcoa (AA), Altria Group (MO), American International Group (AIG), American Express (AXP), AT&T (T), Boeing (BA), Caterpillar (CAT), Citigroup (C), Coca-Cola (KO), E.I. du Pont de Nemours (DD), Exxon Mobil (XOM), General Electric (GE), General Motors (GM), Hewlett-Packard (HPQ), Home Depot (HD), Honeywell (HON), Intel (INTC), International Business Machines (IBM), JP Morgan Chase (JPM), Johnson and Johnson (JNJ), McDonald's Corporation (MCD), Merck & Co. (MRK), Microsoft Corp. (MSFT), Pfizer, Inc. (PFE), Procter & Gamble (PG), United Technologies (UTX), Verizon Communications (VZ), Wal-Mart Stores (WMT), and Walt Disney Co. Use the following address as an example of where you can go to get information on any of these
companies: http://www.nyse.com/about/listed/lcddata.html?ticker=DIS
When I collected the data for AA
using:http://www.nyse.com/about/listed/lcddata.html?ticker=AA, the charts and other information were readily accessible. That may not be the case at this time. You may want to go the company's website and look for the necessary information under 'Investor Relations' or a similar link.

http://finance.yahoo.com/q/hp?s=DIS (Disney) is also good site. It has adjusted stock price and dividend information for each of these companies. This assignment becomes more difficult for those companies that have had stock splits so I encourage you to keep it as simple as possible by using companies that have not had stock splits during the time of your analysis.

After you retrieve the data for at least one of these companies, go ahead and fill it in on the template file attached with this message and compute the beta for the company(ies). Follow my example of 3M to figure out how to compute beta.

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Solution Summary

Calculations of beta are examined.